Marginal Analysis

question 164

Multiple Choice

Marginal analysis:

• A) can be very useful if a firm's pricing objective is profit maximization.
• B) focuses on the last unit which will be sold.
• C) can be used to find the most profitable price and quantity.
• D) can help find the price that results in the greatest difference between total revenue and total cost.
• E) All of these alternatives are correct.

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Definitions:

Normal Curve

A symmetric, bell-shaped curve that represents the distribution of many types of data; most scores are near the average, and frequencies decrease as you move away from the center.

Binomial Random Variable

A type of random variable that arises from a binomial experiment, representing the number of successes in a fixed number of independent Bernoulli trials.

Sampling Distribution

Distribution probabilities of a given statistic, ascertained through random sampling.

Standard Deviation

An indicator of the extent of variability or spread within a collection of numbers, illustrating the degree to which these numbers diverge from one another in a dataset.